Tron DAO Reserve Acquires Millions of TRX, Bitcoin and Tether to Protect USDD – Bitcoin News

Seven days ago, News reported that the Tron DAO Reserve purchased $38 million in tron ​​to secure the network’s stablecoin USDD. Since then, and since the terrausd (UST) decoupling event, the Tron DAO Reserve has continued to purchase large amounts of digital assets to back the project’s reserves. In addition to buying tron, the group has also been adding stablecoins and bitcoin to the mix.

When Terra’s Stablecoin Crashes, Tron’s Algorithmically U.S. Dollar-Pegged Crypto Project Buys Millions of Tron, Bitcoin, and Tether to Defend USDD

Over the past week, all eyes have been on the Terra blockchain and its native crypto assets, LUNA and UST. Both coins saw their dollar value plummet, with more than $46 billion worth of value vanishing from the cryptoeconomy in about three days. Amid all the carnage, Tron DAO Reserve continued to buy crypto assets for its digital currency-based foreign exchange reserves. May 7, News report About Tron founder Justin Sun and Tron DAO Reserve buy $38 million in tron ​​(TRX).

Since then, the project has continued to buy cryptocurrencies amid the market carnage due to the UST influence. Tron’s stablecoin USDD is also an algorithmically pegged cryptoasset to the U.S. dollar, with similarities to Terra’s UST. Buy 504.6 million tron ​​(TRX), Tron DAO Reserve tweet The team’s goal is to “protect the entire blockchain industry and market from panic trading caused by the financial crisis and mitigate a severe and prolonged recession.” The Tron DAO Reserve (TDR) further added:

We also manage the authority of USDD as its early custodian and ensure its price stability through reserves.

After purchasing 504.6 million trons, TDR continued to add funds to reserves over the past week. “To protect the entire blockchain industry and the crypto market, Tron DAO Reserve purchased 500 Bitcoin The average price of $15,515,675 was $31,031.35,” TDR detailed May 10th. On the same day, TDR said It purchased 595,729,832 trons for $45.6 million.While the cryptocurrency market was chaotic that day, the TDR team famous “The dollar held steady amid today’s market volatility.”

The next day, May 11, the TDR team tweet: “In order to protect the entire blockchain industry and the crypto market, [TDR] Already bought 1000 Bitcoin The average price of $30,096,000 is $30,096. ” After the purchase, the TDR organization purchase 1,467,612,695 TRX $97 million as a reserve. After buying $97 million worth of tron, TDR started buying stablecoins. TDR team explain May 12:

In order to protect the entire blockchain industry and the crypto market, [TDR] 100,000,000 purchased USDT The average price is $0.982 and $98,200,000.

The TDR team didn’t stop there, but continued to buy more tokens to protect the Tron network’s stablecoin USDD. TDR said on May 12, Buy 200000000 USDT $0.985 per unit, which adds up to approximately $197 million.Tron-based stablecoin reserve team purchase 1,249.57 Bitcoin The average price is about $29,394.

Tron’s Justin Sun “still believes in algorithmic stablecoins”

Currently, the USD stablecoin has a market valuation of approximately $272.36 million on Saturday, May 14, 2022, with a circulating supply of $271,438,207 at the time of writing. In the past day, USDD’s global trading volume was $85.5 million, and the crypto asset was ranked 156th by market cap.

Similar to how the Terra blockchain burns LUNA to produce UST, to mint one USDD, it takes $1 worth of tron ​​to issue the cryptoasset. This means it can grow as much as the market allows, as it allows anyone to mint stablecoins in a permissionless manner. However, with the market volatility caused by the UST decoupling event, it is safe to say that the crypto community is wary of algorithmic stablecoin assets.

Despite these issues last week, Tron founder Justin Sun spoke with Coindesk’s Tracy Wang, who said he remains optimistic about the algorithmic stablecoin model. “I still believe in algorithmic stablecoins,” Sun said at a time Zoom interview.

tags in this story

Algorithmic Stablecoins, Algorithmic Stablecoins, Bitcoin (BTC), blockchain, crypto market, Justin Sun, Justin Sun, Luna, Reserve, Assure, TDR, Terra’s UST, Wang Tracy, create, TRON DAO Reserve, trx, Dollar, USDT

What do you think of the USDD stablecoin project created by the TRON team? What do you think of TDR’s purchases this week? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News at News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,000 articles for News on the disruptive protocols emerging today.

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